The Importance of Mind & Management

Examining one of the new substance requirements for companies in Jersey

March 4, 2019

The Crown Dependencies, including Jersey, have all committed to bringing in legislation regarding economic substance in 2019. This commitment was given in December 2017 to meet EU standards in respect of tax transparency, fair taxation and compliance with wider international tax initiatives.

While the legislation is yet to be passed, one of the key aspects is ensuring that mind and management are in the relevant jurisdiction, for example in Jersey. Whereas, ensuring management and control is in the relevant jurisdiction from a tax perspective has been a long-standing practice. Mind and management will enshrine in law how relevant companies need to ensure for example that Board meetings physically take place in the jurisdiction, that books and records are kept in Jersey and that the majority of the Board of Directors are physically present at meetings.

Relevant companies impacted by this new legislation, are determined by the nature of the activity undertaken and where the core income generating activities take place.

The activities are:

There will be other tests as well, and once the legislation is passed the Government of Jersey will be issuing formal guidance as to ensuring how economic substance criteria is maintained.

As a provider of trust and company services for 25 years, Fiduchi has a long history of having worked with its clients to ensure that principles of management and control or mind and management are maintained. Bound by a robust anti-money laundering legislation and regulatory environment, we have always sought to ensure that the fundamental rationale question of “why Jersey?” can be answered. The new legislation is expected to reinforce amongst other things the importance of good governance and ensuring that the rationale question continues to be answered positively.

Author(s)
Paul Coundley
Paul Coundley
Executive Director - Operations
white triangle
Other articles
Article Image

Understanding Cell Companies and their uses

Helpful guide

Cell companies and offer many benefits, but what are these? Moreover, why would you want to use a cell company in the first place? These are some of the questions answered by Fiduchi's Associate Director of Corporate Services Terry Northcott.

Published:
November 1, 2018
white triangle
Article Image

Understanding Jersey Limited Partnerships (LPs)

A breakdown of the four different types of Limited Partnerships available in Jersey and their uses.

Jersey Limited Partnerships have become favoured vehicles for any enterprise or group of individuals that require flexibility, privacy, limited liability and the ability to return capital easily to investors. In this article we examine the four different types of Limited Partnerships and their legal variations.

Published:
September 6, 2018
white triangle
Article Image

Balancing Transparency & Privacy

Managing data in a changing world

As future information requirements are identified, so we will look to engage with clients and their advisors as much as we are able, or legislation and regulations allow.

Published:
May 29, 2018
white triangle
white triangle

More Information?

We are already working with our existing clients in preparation of the new legislation coming into effect. However, if you would like to speak to us on how we could help you with your Jersey structure, we would be pleased to assist you. Our director led teams will assess your needs to ensure we take into consideration all your requirements and provide the bespoke service you require.

Call our Private Wealth team for more information on: +44 (0) 1534 755155

Alternatively, you can send us a message us below:
white triangle
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.